I like an orderly and well-documented music library, and one of the first things I do when I get new songs is to find the lyrics and put them on iTunes for my personal use. However, for several songs, the lyrics show without line breaks on my iPod.
I can't quite figure out the pattern. On iTunes, the line breaks all seem to be carriage return characters, both on songs where the line breaks show and where they don't.
I'm still using iOS 6, but I believe I had this issue since the earliest versions of iOS (I've had an iPod Touch since the first generation).